Dividend Reinvestment Plan (DRIP)

Business / Taxes / Dividend Reinvestment Plan (DRIP): Many publicly held companies allow shareholders to reinvest dividends in company stock or buy additional shares through dividend reinvestment plans, or DRIPs. Enrolling in a DRIP enables you to build your investment gradually, taking advantage of dollar cost averaging and usually paying only a minimal transaction fee for each purchase. Many DRIPs will also buy back shares at any time you want to sell, in most cases for a minimal sales charge. One potential drawback of purchasing through a DRIP is that you accumulate shares at different prices over time, making it more difficult to determine your cost basis — especially if you want to sell some but not all of your holding.

Other Words for Plan

Plan Noun Synonyms: design, layout, blueprint, scheme, method, procedure, system, arrangement, programme, project, formula, pattern, script, scenario
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Reinvestment

Business / Taxes / Reinvestment: When you own certain stocks and most mutual funds, you can reinvest the dividends or distributions to buy more shares instead of receiving a cash payout. In a corporate Dividend Reinvestment Plan (DRI MORE

Planktonic Organisms

Science / Biology / Planktonic Organisms: Floaters; one of the two main types of organisms in the pelagic zone of the marine biome. MORE

Plankton

Science / Marine Biology / Plankton: Pelagic organisms that float through the water column, not attached to any substrate and unable to move against the currents and tides. Plankton can be further divided into phytoplankton and zooplankt MORE

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